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Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

How can I determine whether a PEO is a reputable and financially stable company?

No matter what PEO you consider, you should investigate its background diligently.

First, check to see if the PEO is licensed or registered with the state. Certain states, like New Jersey, require PEOs to be licensed and satisfy strict reporting requirements.

Second, check to see if the company is an active member of the National Association of Professional Employer Organizations (NAPEO) – an organization that works with regulatory and legislative bodies to monitor the PEO industry, as well as the New Jersey Association of PEOs.

Third, ask for client and professional references.

Fourth and foremost, ask for financial audit information to make certain that the PEO has paid payroll taxes and insurance premiums in a timely fashion for its clients over a substantial period of time.

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